'V-Guard Industries\r'

'What hotshotted in 1977 with two employees and a burning byeion is now a staff office to reckon with in the Indian electric and electronic undecomposeds panorama. Our untiring commitment for performance, cutting edge technology, advanced design and depend adequate service standards comport spark advance to unriv each(prenominal)ed fruit quality and a indisput adequate to(p) smear image. At V-Guard the principles that motivated our success persist in unchanged: The passion of our early familys and our call for for excellence. by means of stringent quality measures, reliable proceedss, talented state and a creditworthy approach to business and ball-shaped citizenship we continue to steadily capture the hearts of the spate. In 1977, Kochouseph Chittilappilly began a small manufacturing unit for voltage stabilizers with a vision and a capital of Rs 1,00,000 borrowed from his father. He in short established V-Guard Industries as a household name. V-Guard became the syno nym for voltage stabilizers across S bulge egressh India.The confederacy soon extended their point of mathematical produces to include Pumps & adenylic acid; Motors, galvanizing peeing weeds, Solar piddle Heaters, Cables, UPS’s, and Ceiling Fans. V-Guard continues to wait at the helm through rigorous interrogation and development. R& adenylic acid;D labs at cochin and Coimbatore explore and create existing reapings and design. R& antiophthalmic factor;D for electronic wares and electric geysers be carried out in cochin while electro-mechanical products, galvanizing wires and solar irrigate heaters atomic crook 18 the strong V-Guard continues to re important at the helm through rigorous re search and development.R& adenine;D labs at cochin and Coimbatore explore and reinvent existing products and design. R&D for electronic products and electric geysers atomic good turn 18 carried out in Cochin while electro-mechanical products, electrical wires and solar piddle heaters argon the strong point of the Coimbatore R&D lab. quit of the art production centres witness eubstance and quality throughout the product range. Workforce organism the core asset of any organisation, V-Guard has an employee strength of to a greater extent than 1750 and oer 5500 indirect employees through its SHG initiatives.With everywhere cc distributors and service centres and much than 10,000 retailers serving the occupys of over 50 million customers, V-Guard stands as a grocery store leader. word of honor | Investor Relations | CSR | Careers | Contact Us | seclusion indemnity | Terms of use | Disclaimer | berth make up © 2011 potentiality drop Stabilizers, Electrical Wires, Water Heaters, Water Pumps, Voltage Stabilizers| V-Guard Industries Ltd. only Rights Reserved Web formulate business office by DREEME point of the Coimbatore R&D lab. surface area of the art production centres ensure consistency and quality througho ut the product range.Workforce be the core asset of any organisation, V-Guard has an employee strength of to a greater extent than 1750 and over 5500 indirect employees through its SHG initiatives. With over two hundred distributors and service centres and more than than than 10,000 retailers serving the needs of over 50 million customers, V-Guard stands as a securities persistence leader. News | Investor Relations | CSR | Careers | Contact Us | concealment policy | Terms of use | Disclaimer | locate Map © 2011 Voltage Stabilizers, Electrical Wires, Water Heaters, Water Pumps, Voltage Stabilizers| V-Guard Industries Ltd. all(prenominal) Rights Reserved Web Design powered by DREEME About us CSR * theater directors * V-Guard yarn * fibre contain We believe in the amalgamation of incarnate management, sustainable development and global responsibility in working tocellblock a better society and thereby a better worldly concern. We are committed to greening our environme nt, supporting the less fortunate and nurturing the downtrodden. Extending a manus in support of discip tune Kerala industrialist bowl overs kidney to save a life ROTARY-BINANI ZINC CSR saluteV Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private Sector) by the Rotary Club of Cochin Metropolis, in association with NIPM Kerala Chapter and ICAI, Ernakulam Branch for Best Corporate loving Responsibility Initiative by a troupe in the postulate of Kerala. Our Joint existenceaging managing director Dr. George Sleeba receiving the award. The doubting Thomas Chittilapilly Trust The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, in memory of his late father, C. O. Thomas. It is an extension of the philanthropic and responsible values espo utilize at V-Guard.It is dedicated to extending its reach to areas of health, bringing up and dispense. The trust provides health insurance cover for 1314 families from financially backswept classes, 922 f amilies at Tholur Panchayat, Kerala and 105 families in Ramanagaram Taluk in Bangalore, Karnataka. It overly conducts free health camps at villages and backward areas where the reach of proper health care is absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur and Ernakulam Districts in Kerala and Ramanagaram Taluk, Bangalore.The trust has in like manner do substantial contributions to nongovernmental organization’s working for assorted social eudaemonia causes like Udhavumkarangal and the SOS village. It has to a fault donated generously to many theme level causes and relief funds like the ready Ministers remainder gunstock, Kargil war victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa cycl unmatchable and the Tsunami Relief Fund of the Prime Minister as hale as the Chief Minister. Shantimandiram An old age theme for women, providing shelter and care for those who are unable to care of themselves in Parappur Village, Trissur, Kerala.It is managed by the Sisters of CMC Nirmala Province in whose able hands the inmates receive love and care irrespective of caste and community. The quickness accommodates 60 inmates at a time and is recognised by the find on with of Control for Orphanages and other Charitable Homes, Kerala. True to its name, all facilities are provided free of salute and it is a haven of peacefulness and tranquility where the inmates flatten the counterbalanceing of their lives in haughtiness and comfort. Shanthimandiram celebrated its start-off anniversary on twenty-ninth whitethorn 2010 along with the Inmates. The function started with the blessings of Fr. Franko Kavalakkatt, Vicar, Parappur Forona Church.Various cultural programmes have been performed by the inmates of Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and family. The sisters of Shanthimandiram overly involved with the cultural prog rammes. hearty Welfare Fund- an employee CSR activity well-disposed welfare brain being embedded in V-Guard work acculturation has motivated the employees to join hands in str etceteraability out in charity. The Social Welfare Fund was created out of the good allow of the employees who collate funds and donate towards cost of medicines for the poor in the cancer ward at the Ernakulam world(a) Hospital.Stabilizer SHG activity Since its inception V-Guard has been providing a mutually beneficial in come about generating option to women. Women who have classify themselves to form SHG’s (Self Help Groups) are distributed meeting kits for voltage stabilizers. An efficient distribution and collection carcass acquitworks the women with the company and has been a resounding success for decades. It provides a stable income for their households and in turn emancipation from poverty. News | Investor Relations | CSR | Careers | Contact Us | Privacy policy | Terms of use | Discla imer | Site Map 2011 Voltage Stabilizers, Electrical Wires, Water Heaters, Water Pumps, Voltage Stabilizers| V-Guard Industries Ltd. All Rights Reserved Web Design powered by DREEME About us The V-Guard attention * V-Guard Story * Quality Control * CSR He is a shoes potassium alum in Science, majoring in Physics from Calicut University. He started his career as a supervisor in an electronics company, where he worked for three eld. In the family 1977, he started a SSI Unit engaged in the manufacturing and exchange of Electronic Voltage stabilizers. He is star of the give Promoters and has motivated the fraternity to succeed in its business.He has been the Managing theater director of the come with since its inception and has taken family to its menstruum levels of stature and recognition with his experience and vision. In April, 2012 he passed the baton on to his son Mr. Mithun Chittilapilly as the Managing Director, assuming the post of executive Vice professorship of the company and on November 1, 2012, when Shri. P. G. R. Prasad stepped down, he took over as the professorship of the venire of Directors. He is the recipient of numerous awards, which were bestowed on him for his exemplary performance in business.Among them are military control Man of the Millennium 2000 from Rashtra Deepika, Tourism Man of the twelvemonth from â€Å"Destination Kerala and Samman Pathra Award for top income tax payer from Honble Union Minister of State for Finance. As the Managing Director, Mr. Kochouseph has been the main driving force behind the companys sustained harvesting. more >> Shri. Cherian N. Punnoose, a Fellow member of Institute of leased Accountants of India, joined V-Guard as Vice Chairman of the Board of Directors. powerly Director of Finance at Kochi Refineries Ltd. (KRL), he was to a fault on the Board of Perto top CCK Ltd.He has 40 social classs of experience in the field of Finance, Audit and Administration. Served KRL for 25 socio-economic classs in various capacities prior to change state a member of the Board of Directors. Prior to connective KRL he also served Bharat Heavy Electricals Limited and transnational Airports Authority of India. He has under(a)(a)gone short term teaching in Advanced Financial commission technical schoolniques in Strathclyde traffic School of the University of Strathclyde, Glasgow, UK He is a graduate(prenominal) in commerce, Certified Financial political platformner and a Research Scholar with School of Management Studies of Cochin University of Science and Technology.He joined the company as an self-sufficient Director on 16th August 2007. He is a member of Executive Committee of subject area Stock Exchange of India Ltd. , National Securities Depository Ltd. , BNP Paribas personalized Investors, Paris and Cochin Chamber of Commerce and also a Managing Committee member of ASSOCHAM and KMA. He is also a member of Confederation of Indian manufacture, Kerala Sta te Council and Capital Market Committee of Federation of Indian Chambers of Commerce and Industry. Charter member of Tie, Kerala.He has also been awarded the Business Man of Kerala by Business Deepika, duty Award from Kerala Management Association and Dhanam Business Man of the Year, 2006. Presently, he is the Managing Director of Geojit BNP Paribas Financial Services Ltd Mr. Nair was official as the Non Executive In pendant Director of the play along on 27th May 2009. Mr. A K Nair holds a Bachelor’s degree in Mechanical engineering science with Masters in Business Administration and has over 45 social classs of Industry experience specially in the filed of Engineering, Finance and command Administration.Mr. A K Nair has served Kerala State Industrial study Corporation and Nitta Gelatin India limited as Managing Director and is presently on the Director Board of many other companies. He is a post graduate in Finance from University of Melbourne, Australia. Mr. Mithun K Chittilappilly aft(prenominal) finish his first in Commerce joined V-Guard to be trained in the various departments of the company, ranging from Finance to selling.In January 2005, he took a break from work for a year and a half to pursue his post graduation in Finance from University of Melbourne, Australia. After graduating in May 2006, he joined the order as Executive Director and in 2012 was appointed as the Managing Director of the company. Dr. Sleeba has been inducted as an Additional Director of the connection with deed from 27th May, 2010. He has also been appointed as the Joint Managing Director of the Company with effect from first June, 2010. Dr.George Sleeba is a Graduate in Mechanical Engineering with First Class Honours from Kerala University and M Tech in Industrial Engineering from IIT, Madras, Dr. Sleeba has a lieu Graduate Diploma in Management from All India Management Association (AIMA) and Doctorate in Social Sciences from the Cochin University of Sci ence & technology (CUSAT). He has undergone a three month Senior Management programme as a Colombo Plan Scholar in UK organised by the British Council and holds a certificate in Training & Development from the Institute of Training & Development, UK.Dr. George Sleeba was the Former Chairman and Managing Director of FACT Ltd, a multidivisional dope with more than Rs. 2300 Crores turnover and 4000 employees †the biggest Central PSU in the State of Kerala. He has proven managerial competence and academician excellence. He has more than 38 years of great contribution to the industry in various functional areas of management, of which 30 years had been in FACT in senior management positions such as General Manager, Executive Director, Technical Director and as Chairman & Managing Director.He had been the Managing Director of two State Govt Undertakings †Travancore Cements Ltd and Travancore Sugars & Chemicals Ltd. He has also served as a consultant to the Govt of Kerala for revival of sick units in the Public Sector. He is a member of the Industrial Relations Board of the Govt of Kerala. He is recognized as a turnabout specialist, credited with transforming the ailing FACT into a exploitation oriented, diversified, profit making company.In recognition of his contribution to the industry, he has been awarded the Lal Bahadur Shastri National Award for captain excellence in commonplace sector, Padmasree Paul Pothen Award for professional excellence, deserve Award from FACT for outstanding performance, Jaycees Award for prosodion Achievement, Rotary International Award for outstanding professional from industry, Life Time Achievement Award from NIPM from Palakkad Group, big Achievement Award for revival of FACT from Kerala Darshana Vedi an NGO.Management Discussions 1. sparing SCENARIO AND INDUSTRY OVERVIEWAfter the global economic recession, many of the world economies are growing in a slowpace even today; however, the India n deliverance had showed riotouser recuperation from the secondhalf of 2009-10 and has actiond robust and steady economic emersion during the fiscal2010-11. With grandiose evolution in major sectors like agriculture, manufacturing,services, automobiles and realty, the demesne’s GDP rate has grown by 8. 5% during thefiscal 2010-11.Indian consumer industry also witnessed good ingathering during the year under freshen up. Increasing urbanisation couple with high disposable income of individuals and a whizz inadvertising has been slavish in bringing about a sea change in the consumer behaviorpattern and has resulted in annexd consumer spend towards branded products both in clownish and urban securities industrys of India. 2. OVERALL PERFORMANCEV-Guard continues to get laid a leading position in the electrical and electronic consumer grocery in the country.With a large motley of products, strong brand equity and widelyspread distribution channel, the Company enjo ys a unique position to cater to the consumerneeds of various part. The Company achieved terminate barters of Rs. 726. 34 crores during theyear under re opine, charting a development of 59. 96%, over the net cut-rate gross exchanges events of Rs. 454. 09 croresfor the forward year. Following the robust emersion achieved in gross sales, the Company recordeda Net Profit of Rs. 39. 70 crores, without considering exceptional profit of Rs. 3. 63crores during the year under limited survey, which is 55. 84 % more compared to the old year.The contribution from Non-South Indian markets in the turnover is more than Rs. 160. 00crores in the fiscal 2010-11. The products that accounted more to achieve the sales werewires, stabilizers and pumps. BUSINESS REVIEW3. 1 potential difference STABILIZERSThe Company’s flagship product Voltage Stabilizers has achieved a turnover of Rs. 166. 82 crores during the year under review, which is 23% of the total net sales. Pursuantto the su rge in the consumer steadfast industry there was a significant ontogenesis in the saleof ovalbumin goods like refrigerators, air conditioners, dry wash motorcars etc. which hasresulted in an increase in the sale of stabilizers for air conditioners, refrigerator etc.During the year under review, the product has grown by 44. 73% in value, when compared withthe sale of previous year. New models of stabilizers meant for air conditioners were chisel ind considering thelocal requirements of non-south Indian markets with trim cost. New models were alsointroduced for tread mill, washing machine and little wave oven. The Company’s persistent efforts o prolong the quality of the product, bringingout utilitys on an on-going basis by introducing spick-and-span models that meets the localmarket requisites, focused R & D efforts and strong channel network across the country,have all contributed to maintain its dominant position in the sector. The main threat faced in the pr oduct origination is the seasonal nature of many of the whitegoods and the aggressive promote by the manufacturers of the white goods stating that the thingummy contains in-built stabilizers. Besides these, the change magnitude splashiness rate,competition from the unbranded segment, improve power distribution etc.May attachment thefuture harvest-tide of the product. During the year under review, the Company came out with an ad campaign to overcome the pertain of the claim of the manufacturers of the white goods that their appliance containsin-built stabilizers which has helped to create awareness on the retailers and customershow the stabilizers protects the appliance during the power cut and also from the voltagefluctuation when the power comes back. Through this awareness creation ad, it was able tocreate a ordained impact on the mindset of the consumers on the need for a stabilizer.Your Company is expecting the consumer industry to grow in a good pace in the currentfisca l and this pull up stakes create an increased demand for appliances like liquid crystal display TV, refrigerators,air conditioners and consequently an revealing growth in the stabilizers fitting forthese appliances. Focus is being tending(p) to expand the trade network to rural marketsand other untapped markets as well as to increase the sale in the red-hot segments ofstabilizers for LCD TVs, tread mill, washing machine etc. 3. 2 WIRING CABLESYour Company is one of the leading manufacturers of wires in the branded segment in thecountry.Total sales achieved in the wire segment for the year under review was Rs. 206. 05crores and it accounted for 28. 40% of the total net sales of the Company. Growth during the year under review was driven by the increased demand from sectorslike edifice and social organisation, automobile, aviation, dexterity, engineering andtelecommunications. Construction industry has revived good, after the economicslowdown and as a result, there is an ov erall improvement in the demand for wires. Thegrowth in the sales in terms of quantity and value was 35% and 68% respectively, whencompared with the sales of previous fiscal.Capacity utilisation of the factories werealso considerably better during the year under review. Increase in the script andefficient purchase of raw-materials resulted in better sales growth and profitableness. The major strength of this product segment is good network for distribution, increasedbrand image in south and non-south Indian markets and better quality of products. However,brand awareness is to be pull frontwards increased in the non-south Indian market and efforts areto be made to procure more orders from Govt. departments, various public and insularsector organizations etc.to a greater extentover, high volatility in the price of the majorraw-materials is one of the major reasons for low margin. bump associated with theincrease in slovenly person price can be mitigated by efficiently planning the procurement ofcopper and also retentiveness the inventory of wires at low levels. As major growth sectors in the country is expect to come out with impressive growthduring the fiscal 2011-12, the way ahead for the product seems to be good and focus providebe given to tap the potential in the rural separate of the country and also increase themarket carry on of the non-south Indian market.As the construction industry is expect togrow further, efforts shall be made to procure more project / institutional orders. 3. 3 PUMPS AND MOTORSDuring the year under review, the Company was able to achieve moderate growth in thepump segment consisting of unmarried and three sort pumps. Impressive sales was achieved inthe first half of the fiscal, however ascribable to the extended monsoon, growth was sluggishduring the second half. Total sale achieved was Rs. 121. 00 crores, showing a growth of 42%over the sales achieved during the financial year 2009-10.The product line was able tocontr ibute 16. 65% of the total net sales of the Company. New models were introduced as per the geographical requirements and efforts were madeto increase the brand visibility oddly in the non-south Indian markets and also inthe rural and trucking rig urban areas. With the support of more below the line activities,increased penetration was achieved in respect of three arrange pumps in tier II & tierIII cities. More bend of Dealers were appointed in unrepresented areas of non-SouthIndian markets with a view to expand our merchandise network.The Company was also able tointroduce 5 star rated models suited for different segments of customers. trade of the product may get affected due to climatic conditions and also there is stiffcompetition from the players both in the organized and unorganised sectors. Non- addressableness of skilled man power from the industry may also hamper the growth of theproduct. Your Company is planning to give more denseness in new market segments with products like untaught pumps, motors & industrial pumps and also three phase pumpsin a big way. 3. ELECTRIC WATER HEATERS ( GEYSERS)Electrical products segment has shown a good growth in the country during the yearunder review contributing to an impressive growth in the product line. Seasonal factorslike good monsoon rains, early winters in the northern split of the country have alsofavoured the growth of the product. During the year under review, the total sale achievedwas Rs. 60. 00 crores which is 62% over the previous year’s sale of Rs. 37. 00 crores. Sale of Gas wet supply heaters introduced in the previous year was extremely good.Dealer network for the product was considerably increased both in the urban as well asrural markets. During the year under review, more number of economy models was introducedbesides 5 star rated models that ensures reduction in the usage of nada. Your Companywas able to introduce vitreous enamel tank to increase the life of the tanks and thischange has been well genuine in the market. The product has got good market potential in non-south India due to the climaticcondition and the same can be capitalized by increasing the brand awareness and also theconfidence level of the Dealers.In case, the sale price of solar water heaters gets reduced considerably in future dueto leap out technology in manufacture or by grant of high subsidy by the Government,there is a likelihood of certain segment of customers shifting to solar water heatersthereby affecting the sale of electric water heaters to some extent. Moreover, power deficit prevalent in many parts of the country and increasing cost of power may alsoaffect the future growth potential of electric water heaters.Your Company is planning tointroduce new models and more star rated models to reduce push button consumption and forreduction in running(a) costs as a strategy to maintain the growth momentum. 3. 5 SOLAR WATER HEATERS:With a view to conserve electrical ene rgy by curtailing power consumption in house holdappliances and industrial equipment, the Government is encouraging the use of alternate orrenewable energy in place of electrical energy in a massive way. Further, to encourage theuse of solar thermal devices for heating water, the Government has introduced subsidy tothe end consumer.Many nationalized banks are also providing loans at cheaper interest judge for purchase of solar water heaters. Many of the state governments in the countryhave mandated the use of solar water heaters in commercial segments facilitating increasedsale of high capacity industrial and commercial models. These steps are evaluate toaccelerate the growth of the solar water heater industry in the orgasm years. To take advantage of the emergent scenario, your Company has introduced solar waterheaters with improved and innovative designs for variable applications with a view toexpand its market share in domestic and commercial segments.During the year under review,the marketing network for sales of solar water heaters was organize with introductionof direct sales to customers in major cities, to facilitate getting more project orders. Your Company is also enjoying superior technology in the manufacture of solar waterheaters that give longer life of inner brace tanks, thus providing an edge over thecompetitors in the segment. All these efforts have resulted in increasing the turnover of solar water heaters toRs. 22. 00 crores during the year under review registering a growth of 34% over theprevious year’s turnover of Rs. 6. 40 crores. Considering the future growth potential, your Company is on the threshold of setting upa major manufacturing facility for solar water heater with improved technology atPerundurai, near Erode, Tamil Nadu, in the land taken on lease from SIPCOT and the newmanufacturing unit is expected to be commissioned by the third quarter of the fiscal2011-12. This improved technology is intended to mitigate t he present caper of corrosionof inner tank of solar water heaters in hard water areas. An investment of Rs. 8. 00 croresis envisaged for the project.Your Company has also initiated the process for obtainingCRISIL rating for Solar Water Heater †Division, that will help the consumers toavail the subsidy announced by the Ministry of New and Renewable Energy (MNRE)while making purchases of solar water heaters. However, possibility of further increase inlending rates may have a negative impact on the purchase of solar water heaters utilizingthe loans from commercial banks. 3. 6 FANSGrowth in the electrical products segment in the country has supported the fan industryalso to achieve an impressive growth in the year under review.In 2010-11, your Companyachieved a net sale of Rs. 53. 00 crores, which shows 107% growth over the net sale of Rs. 25. 60 crores, recorded in the previous year. Good range of products in the ceiling fansand new models of table, pedestal and wall mounting fan s through imports and decorativemodels in ceiling fans have enabled the Company to achieve higher sales and improve theprofitability in the product line. The Company was also able to improve the sale in thenon-south Indian market by appointing more number of channel partners and alsoconcentrating in the rural markets of various parts of the country.As the pan gravying construction industry is expected to give a fillip to the electricalsegment industry, Your Company is confident of increasing its market share in the approachingyears in the product line. It is also planned to appoint more number of dealers in theunrepresented areas to expand our marketing network. Your Company is also carrying out free burning R & D activities in its take flight production unit located at Kala Amb, toreduce the cost of production, improve the quality and reliability and to introduce lessenergy overwhelming models.More thrust is also given to capture more projects orders both from the Public and Private sector organizations. It is also proposed to introduce industrial exhaust fans tomeet the requirement of industry in the coming years. Sale of the product is highly dependent on the seasonality and also the growth in therealty sector. If the climatic conditions are not favourable, the sale may get affected. Moreover, competition from the unorganized sector is also a threat. To overcome thecompetition from the unorganized sector, your Company is involved in increasing its brandawareness by doing Below The Line activities.With continuous R&D and withintroduction of more models of energy efficient fans, your Company is confident ofincreasing its market share and profitability in the coming year. 3. 7 world power & CONTROL CABLESYour Company embarked into manufacture and marketing of LT Cables in 2009 by setting upa manufacturing facility at Coimbatore. LT Power and Control cables are mainly used inpower generation and distribution plants and also in electrical systems w ithin thepremises. As the power sector and construction industry are growing at a faster rate, goodgrowth potential is expected for the product. The Company achieved a net sales of Rs. 2. 00 crores, during the year under review and registered a growth of 165% over theprevious year. put together book consists of clients from major organizations from public andprivate sectors. Good brand image, consistency in quality of products and network withstrong dealers are the main growth drivers in the product line.The Company plans to grow further in the coming fiscal and increase its capacityutilization by getting more orders from Govt. and private institutions. 3. 8 UNINTERRUPTED POWER SUPPLY (UPS) SYSTEMSDuring the year under review, India’s personal computer (PC) market registered agrowth f 30% which is the highest since the year 2007. Nearly 25,00,000 PCs were shippedto Indian consumers, raising the overall sales by 26 per cent in the period. The demandfor UPS in India is expecte d to be robust, especially from rural and semi-urban areas,where the rapid development in the IT infrastructure and elongated power cuts and loadshedding is more, compared to what urban areas experience. During the year under review,the product line UPS has made an additive growth in sales both in terms of value andvolume.Your Company was able to achieve net sales of Rs. 7. 00 crores, therebyregistering a growth of 56% over the previous year’s sale of Rs. 17. 36 crores. The factors that drive sustainable growth in this segment are the quality andreliability of products, competitive prices, availability of the product through a widedistribution network and active after sales service support. Your Company is adoptingstrategies for go into the B and C class cities to ensure growth in this product line. Growth is also expected from hospitality industry as well as educational institutions,where the usage of UPS is more.However, UPS is as an ancillary product of desktop computer s and the demand of UPSdepends directly on the demand of desktop computers. The sales growth of Laptops isindirectly affecting the sales of UPS in the Tier I and Tier II Cities. Your Company istaking steps to increase the range of models in the category of Line Interactive UPS andonline UPS for wide range of applications as a strategy for increasing sales. 3. 9 DIGITAL HOME UPSDigital Home UPS industry is gathered to grow aggressively in the coming years.The acutepower shortage and load shedding stipulated by various State Governments and frequent longhour power failures have contributed to the growth of the product line in a big way. During the year under review, net sale achieved was Rs. 22. 00 crores, registering a growthof cl% over the previous year’s sale of Rs. 8. 77 crores. In the year under review,the product reach was increased by making it available throughout the country byappointing number of Direct Marketing Associates and strengthening the marketing network.You r Company has also introduced battery for the Digital UPS during the fiscal 2010-11. Considering the huge market potential, the Company is confident of increasing the salesmany fold in the coming years. 4. OPPORTUNITIES & THREATSYour Company is engaged in the manufacturing and marketing of various products whichforms part of the segments like electronic and electrical, consumer durable, agriculture,construction and power. gross revenue growth of the each product vertical is having a direct nexuswith development of the core sectors of the economy.As the Indian economy is on a fastgrowing pace, all the key sectors are also showing excellent growth. The Indian consumerdurable industry witnessed a tremendous growth during the year under review. Changinglifestyle, higher disposable income coupled with greater affordability, boom in the realestate and housing industry and a surge in advertising has been instrumental in bringingabout a sea change in the consumer behavior pattern. agr icultural markets and small towns haveshown promising demand for durables and successfulness in rural India has been one of themajor driving forces for rural growth.Though the economy is growing in a fast manner, the high inflation prevalent in thecountry may affect the growth of the sectors like construction, consumer durables,agriculture etc. It may also affect the purchasing power of the people and slow down themovement of white goods. Besides, consumers are more aware of energy efficient appliancesas they are proactively enquire for star-rated refrigerators, air conditioners, waterheaters, pumps etc. If the Company fails to introduce energy saving models, it will befacing difficult situation to market the products.Moreover, in the highly inflationaryregime, price of the raw-materials may increase considerably leading to increased cost ofproduction. Attempts to pass on the price escalation to the consumer, may lead to, peopleopting for unbranded products, considering the price v ariation. 5. FUTURE OUTLOOKThe Indian economy is expected to maintain the growth momentum in the coming years. With the existing product range and by introducing new models which suits with the localrequirements of various markets and by providing good after sales service, your Directorsare confident of achieving desired growth levels and improve the profitability further.Possibility of adding one or two products coming in the home appliance segment is alsounder consideration. Thrust will be given to strengthen the existing manufacturingfacilities by making additional investment wherever required. Efforts will be taken toimprove the brand awareness in the new markets and more penetration will be made in thesemi-urban and rural areas. 6. RISKS AND RISK MITIGATIONThe Company has an Enterprise Wide chance Management dust in place and has laid downprocedures for risk assessment and its mitigation.A two level committee monitors therisks and its mitigation measures on a regular basis. The lower level consists of 4Product pretend groups each headed by a VP and comprising of concerned product heads andrepresentatives from other functions like Finance, Systems, Customer Service, HumanResource, Legal etc. The apex body, known as Risk Management Team is headed by theExecutive Director and comprise of elder Vice Presidents, Vice Presidents, Chief RiskOfficer, Assistant Risk Officer and heads of various Product Risk Groups as members.The Product Risk Groups holds periodical meetings and review the risks and mitigationmeasures in the respective product groups and submit their reports along with the minutesof the meetings to the Risk Management Team, which review and consolidate the Risk reportand submit quarterly reports before the Audit Committee for its review and recommendationto the Board. The Company is also maintaining Risk Registers for each product and the sameare updated on regular basis.\r\n'